India's Finance Ministry Introduces Bill to Apply MDR Charge on Large UPI Transactions

The Finance Ministry has introduced the Payment and Settlement Systems (Amendment) Bill, 2027 in Parliament on Tuesday. The bill has been constantly targeted by the opposition. Under this bill, the opposition is targeting the Modi government. Under this bill, the Merchant Discount Rate (MDR) has been said to be applied. This charge can be applied to UPI transactions of more than 2000 rupees. That is, if a payment of more than 2000 rupees is made in one go, then the MDR charge will have to be paid. Since the introduction of the bill in Parliament, the confusion is about who will apply this charge. The opposition has been constantly targeting the government. Now the government itself has made it clear that this MDR charge will be applied. The finance minister has responded to the picture by hitting back at the allegations of the Congress. Finance Minister Nirmala Sitharaman on Thursday responded strongly to the claim of Congress leader Jairam Ramesh that the government is clearing the way for the fee on all UPI transactions. MDR questions are being raised.